Rapport nr - SIFO

Agro-food industry 192.4 Terroir® store brands and “Reflets de France”The concept of Terroir® store brand (“labeled product”) is increasing on the French market. Thisbrand uses several regional specialties which are regrouped under a main store brand which respondsto restrictive specifications (Fig 2). Each retailer then establishes contract with a SMC (small and mediumcompany) in the origin production areas. In general, store brands are very difficult to classifysince they do not directly manufacture a product, but rather they can purchase the product at smallercompanies or unions of producers and ensure the product’s commercialisation in their hyper markets(Lapoule,).ConsumerStore brand = guarantees of origin,quality and a good qualitypriceManufacturerScale economyKnow-how valorisationMarketing and relationalcompetencesDistributorProfitabilityDifferentiationFigure 2.2: Decomposition of a Terroir Store BrandAs of 2004, the “Reflets de France” is composed of 300 food references (67% of fresh products, 24%of groceries, 9% of liquid), which equals a turnover of 315 M€. Eighty percent of the partners aresmall or medium size companies of less than 30M€ of turnover. This brand is distributed in more than3500 different places nationwide. In addition, “Reflets de France” brand is also developed in otherEuropean countries and labelled “Made in France”. Each month, all commitments concerning theseproducts are negotiated. Carrefour, owner of this brand, helps small companies invest in productionand establishes multi-year contracts with them. “Reflets de France” is also a partner of the French cultureMinistry.Store brands give consumer three guarantees: origin, intrinsic quality and extrinsic quality (Fig 3).